As part of the COVID-19 Relief Law, the Paycheck Protection Program (PPP) is reopening today for First Draw borrowers. This round is set to authorize up to $284 billion in job retention and other expenses through March 31, 2021. Existing borrowers may apply for a Second Draw PPP loan starting Wednesday. 

Key PPP updates include:

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

For more information, download the SBA's overviews:

• Top-line Overview of First Draw PPP
• Top-line Overview of Second Draw PPP

And, for detailed information, be sure to attend the National Council of Nonprofits webinar on Wednesday and/or MNA's Town Hall on Thursday. Details below.